Green Mortgages Can Help Home Owners Invest in Energy Efficiency Benefits

Sustainability and Green Building
Published

This post has been updated.

There's no question that COVID-19 has changed the way people live in their homes. An increase in telecommuting has led to a heightened interest in home offices and exercise rooms, including the overall needs of the home, such as energy usage.

Freddie Mac recently reported that "household electrical usage in late March was about 22% higher than in 2019," at the onset of stay-at-home orders, with midday consumption (between 10 a.m. to 3 p.m.) rising approximately 35%. Depending on local utility costs, this would equate to an approximate $25 increase in monthly utility bills in the month of April.

Some local utility companies in states such as California, Michigan and New York have asked consumers to moderate electricity usage as a result of this increased demand. To reduce energy consumption and utility bills, home owners may want to consider upgrades such as energy efficient appliances, heating, ventilation or air conditioning (HVAC) units, windows and doors, as well as the addition of air sealing, insulation, solar panels or geothermal heating.

Although any new purchases or upgrades may cause some to pause based on their current economic situation, energy or "green" mortgages can offer home owners an opportunity to purchase homes that utilize these technologies through mortgages that permit higher debt-to-income ratio requirements. Not only can such energy-efficient upgrades help decrease monthly utility costs, but a study released by Freddie Mac last year has also shown that such features and green-building certifications can increase a home's market value.

Builders and remodelers can utilize discussion points through Home Performance Counts, NAHB's collaboration with the National Association of REALTORS, to determine what energy-efficient features are most beneficial for their clients.

To stay current on the high-performance residential building sector with tips on water efficiency, energy efficiency, indoor air quality, and other building science strategies, follow NAHB's Sustainability and Green Building team on Twitter.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Oct 24, 2025

Is the Construction Industry Attracting Younger Workers?

According to the 2023 American Community Survey (ACS), the median age of construction labor force is 42 years old — one year older than a typical worker in the national labor force. However, the construction industry has seen an increase in younger skilled labor since the peak of the skilled labor shortage in 2021.

Codes and Standards

Oct 23, 2025

NAHB Requests Member Feedback on ICC Review of International Residential Code

The International Code Council (ICC) has announced it will begin a holistic review of the International Residential Code (IRC), the national model construction code for one- and two-family dwellings that ICC updates every three years.

View all

Latest Economic News

Economics

Oct 24, 2025

Inflation Picks Up in September

Inflation increased in September to the fastest pace since the start of the year, showing tariff pressure on prices continues to materialize gradually, according to the Bureau of Labor Statistics (BLS) latest report.

Economics

Oct 23, 2025

Existing Home Sales Increase in September

Existing home sales rose to a seven-month high in September as mortgage rates eased and inventory improved, according to the National Association of Realtors (NAR). Resale inventory matched to the highest level since May 2020, though it remained below pre-pandemic levels.

Economics

Oct 22, 2025

Where are Porches Most Common for Newly-Built Homes?

Although the share of new homes with porches edged down in 2024, porches continue to rank as the most common outdoor feature on new homes, according to NAHB tabulation of the latest data from the Survey of Construction (SOC, conducted by the U.S. Census Bureau with partial funding from HUD).